Ogra fails to enforce LPG retail prices
ISLAMABAD: Oil and Gas Regulatory Authority (Ogra) has fixed the maximum consumer price for LPG but its directive remains limited to paperwork as the fuel is still being retailed at much higher rates.
The regulator fixed a maximum reasonable price of liquefied petroleum gas at Rs125.33 per kg – a reduction of Rs50 per kg in plain/urban areas and a reduction of up to Rs90 in hilly areas.
The notification issued by the regulator here on Saturday said, “OGRA in exercises of the powers conferred under Section 6(2) (q) of the OGRA Ordinance, Rule18 (2) of the LPG (Production & Distribution), 2001 has determined reasonable maximum consumer price.”
The price of 11.8 kg cylinder includes the distributor’s margin of Rs70 per cylinder for all the urban and rural areas of the country.
However, due to higher transportation cost in AJK, FATA and Northern Areas, Rs30 per 11.8 kg cylinder will be added in excess of the maximum LPG consumer price.
OGRA said the maximum consumer price for 100 per cent locally produced LPG is Rs1,477 for 11.8 kg cylinder, which makes the price per kilogram at Rs125.16.
The maximum consumer price for 100 per cent imported LPG will be Rs1,644 per 11.8 kg cylinder, that is Rs139.32 per kilogram and the maximum consumer price for local & imported mixed LPG has been fixed by OGRA at Rs1,479 for 11.8kg cylinder, which is Rs125.33 per kg.
OGRA has also directed the LPG marketing companies to ensure that the LPG consumer price of their company do not exceed the above mentioned consumer price.
While, OGRA said that the LPG price in hilly areas including Murree, Muzafarabad, Gilgit-Baltsitan, Mansehra, FATA and Balakot will be between Rs128 to Rs142 per kg, but the current prices in these areas are between Rs215 to Rs175 per kg.
Similarly, the notified LPG price for the plains including Karachi, Lahore, Faisalabad, Sargodha, Rawalpindi, Islamabad, Gujranwala, Gujrat, Rrahimyar Khan, Multan, Attock Dera Ismail Khan and Peshawar is Rs125 per kg.
Contrary to the assessments by the regulator, LPG price in Rawalpindi/Islamabad and Attock LPG is Rs170 per kg and in Peshawar, Dera Ismail Khan, Kohat, Sukhar, Rahimyar Khan and Sadiqabad, LPG is available to the consumers at Rs165 per kg.
The retail price of LPG in Gugranwala, Jhang, Sargodha, Sahiwal, Multan, Gujrat and Gujranwala is Rs155 per kg.
Meanwhile, the LPG distributors have called upon OGRA to take stern action against the marketing companies selling LPG at higher rates.
“We are bound to sell LPG at higher rates because we are getting costly gas,” said Irfan Khokhar, chairman LPG Distributors Association of Pakistan, adding, “We demand the regulator to cancel the licence of marketing companies who do not sell LPG at the prescribed price.”